Thread by @bobbyong

2020 has zoomed by so quickly and it's time for me to give my predictions on the crypto markets in 2021. So here we go my predictions on what I think will take place next year:

1/ BTC will have a very strong year driven by institutional demand. We have broken past ATH so all eyes will be on log price chart with next line of $100k. More public listed companies will hoard >$100m BTC. One small central bank will start holding BTC. Bitcoin ETF will launch.

2/ ETH will break past its $1,500 ATH mainly driven by DeFi. Gas fees will skyrocket again and highlight scalability issues. Most of the year will be spent coordinating on a Layer 2 scalability solution. My bet will be on ZK Rollup gaining traction towards the end of the year.

3/ We will see existing DeFi apps launching on other Layer 1 platforms like Serum & Polkadot. Hard for me to imagine any other L1 platforms gaining a foothold. We will see a multi-chain Metamask-like wallet making it easier to connect to multiple blockchains.

4/ DeFi derivatives will become more popular and will be driven by the large number of long tail coins not traded by CEX. Futures, perpetual swaps, options pricing on DEX will become as competitive as its centralized operators.

5/ Prediction markets will take off. We saw this year during the US Presidential Election that there is strong demand for a robust prediction market. Legality is still a big issue. I'm expecting anonymous teams to launch on an IPFS/Arweave hosted portal with stablecoin betting.

6/ Algorithmic stablecoins farming will be the DeFi food farms of Q1 2021. Dozens more will launch and most will die leaving the earlier ones stronger. I'm expecting more innovation on the algorithmic stablecoins design space.

7/ NFT will continue to grow but I don't think it will take off like how DeFi did in 2020. I think there will still be couple more years of development before exploding. The path towards adoption will most likely be through a new game developer adopting NFT for in-game items.

8/ More M&A will take place amongst crypto companies and tokens. There will be a quick rush to IPO/SPAC after Coinbase. We will see token teams finally merging (for real!) combining their tokens to be stronger together via token swaps.